PAIR Investment Company Limited (“PAIR” or “the Company”) was incorporated in January 2007 and commenced operations as a Development Finance Institution (DFI) on May 29, 2007. The Company’s core operations include managing strategic investments, providing financing solutions, and generating income through a diversified investment portfolio. PAIR focuses on prudent capital allocation and maintaining a balanced risk profile to support long-term value creation and sustainable financial performance.

PAIR Investment Company Limited is a Joint Venture Investment Company that has been formed as a result of an agreement between the Governments of Pakistan and Iran. The principal activities of the Company include making strategic investments in listed and unlisted securities, managing investment portfolios, and undertaking other investment-related activities in accordance with the applicable regulatory framework.

PAIR is engaged in wholsale treasury and investment activities, including the buying, selling, and management of securities and other financial instruments, along with providing corporate finance, trade finance, and investment banking services to support business and investment activities in Pakistan. PAIR is authorized to make direct investmnets along with promoting infrastructure and facilitating investmets flows while supports economic development activities. 

The Company has an equal joint venture ownership structure between the Governments of Pakistan and Iran. The Government of Pakistan, through the Ministry of Finance (MoF), holds a 50% shareholding, while the Government of Iran, through Iran Foreign Investment Company (IFIC), holds the remaining 50% shareholding. It operates under a balanced governance framework with representation from both shareholders on the Board of Directors.

The ownership structure has remained the same since the inception of the Company. It is likely to stay the same in the foreseeable future.

The business acumen of the sovereign sponsors is regarded as strong. IFIC follows a prudent and diversified investment approach, overseeing Iran’s foreign financial assets with an emphasis on sustainable value creation, economic cooperation, and portfolio diversification.

The Governments of Pakistan and Iran, acting as sovereign sponsors, exhibit strong financial strength and creditworthiness, supporting their ability to effectively sustain long-term investments.

PAIR Investment Company Limited has a balanced board structure. The Board of Directors consists of the Chairman, Managing Director/CEO, and non-executive directors nominated by the respective shareholders. The board currently includes members representing both the Government of Pakistan and the Government of Iran, ensuring equal representation in strategic decision-making and governance matters.

The Board comprises experienced professionals representing both Pakistan and Iran, providing strategic oversight and governance to the Company. The board members possess diversified expertise in finance, banking, investment management, corporate governance, and economic development. Mr. Iftikhar Amjad serves as the Chairman of the Board and provides strategic direction and governance oversight, while Mr. Abbas Daneshvar Hakimi Meibodi, the Managing Director/CEO, oversees the Company’s overall operations, business strategy, and institutional growth initiatives. Other board members include Mr. Zulfiqar Younas, Mr. Seyyed Mahdi Ramazni, and Mr. Mohammad Hossein Mohammadi, who contribute towards strategic planning, investment evaluation, policy formulation, risk management, and strengthening bilateral investment cooperation between Pakistan and Iran.

The Board has established four committees to ensure effective oversight and governance, namely the Board Audit Committee, Board Risk Management Committee, Board Human Resource Committee, and Board Strategic Investment Committee.

M/s Yousuf Adil Chartered Accountants, who are in the category ‘A’ of SBP and have a QCR rating by ICAP, are the Company’s external auditors. They have expressed an unqualified opinion in their audit report for the year ended December 31, 2025.

The Company’s organizational structure reflects a well-defined governance framework, with the Board positioned at the highest level and supported by the four key committees These committees facilitate focused supervision and informed decision-making. The MD/CEO reports directly to the Board and oversees the Company’s overall operations, with support from the Executive Secretary to the MD. The structure demonstrates a clear segregation between governance and management functions, enhancing accountability, transparency, and operational efficiency.

The management team of PAIR Investment Company Limited comprises experienced professionals with extensive expertise in banking, treasury management, investment banking, finance, risk management, compliance, and corporate administration. The Company’s executive management is headed by Mr. Abbas Daneshvar Hakimi Meibodi, who oversees the overall strategic and operational activities of the Company. The senior management team includes Mr. Khurram Faizyab, Head of Corporate & Investment Banking Group; Mrs. Kauser Safdar, Chief Financial Officer; Mr. Ahmad Bilal Darr, Head of Treasury & Investments; Mr. Amir Aizaz, Company Secretary and Head of HR & Administration/BCP; Mr. Jahangeer Jamil, Head of Capital Market; Mr. S. M. Amin Kazmi, Chief Internal Auditor; Mr. Afak Shah, Chief Compliance Officer; Mr. Naveed Shahzad, Head of Information Technology; and Mr. Muhammad Azeem Dada, heads Credit & Risk management. Collectively, the management team is responsible for implementing the Company’s strategic objectives, maintaining regulatory compliance, managing operational and financial risks, and supporting sustainable business growth.

The management is supported by eight management committees, including the Asset and Liability Committee (ALCO), Risk Management Committee, Admin Committee, Compliance Management Committee, IT Steering Committee, HR Committee, Central Credit Committee, and Internal Control Monitoring Committee, enabling effective oversight and streamlined operational management.

The heads of departments monitor the performance through system-generated reports. These reports can be generated daily, weekly, monthly, or quarterly basis to evaluate the performance of the respective departments.

PAIR Investment Company Limited maintains a comprehensive risk management framework designed to identify, assess, monitor, and mitigate the financial and operational risks associated with its business activities. The framework is overseen by the Board of Directors through dedicated committees, including the Risk Management Committee and Audit Committee, which supervise the Company’s risk policies, internal controls, and compliance functions. In line with the requirements of the State Bank of Pakistan, PAIR has implemented policies covering credit, market, liquidity, and operational risks to ensure effective risk identification, monitoring, and mitigation. The Company’s Risk Management Department primarily focuses on four key areas: Credit Risk, Market Risk, Liquidity Risk, and Operational Risk, with clearly defined roles and responsibilities for each risk function.

The DFI industry demonstrated improved financial performance during 9MCY25, supported by easing monetary conditions, prudent balance sheet management, and strong investment income generation. Following the State Bank of Pakistan’s gradual reduction in policy rates, the industry benefitted from lower funding costs and enhanced spreads on previously booked high-yield assets. Total assets of the sector stood at PKR 1.4trn in 9MCY25 compared to PKR 2.4trn in 9MCY24, reflecting a decline of ~41.7% YoY, mainly due to contraction in the investment portfolio. Total investments reduced to PKR 1.1trn from PKR 2.0trn, primarily driven by lower allocations in PIBs and T-bills amid changing interest rate expectations and maturity run-offs of high-yield instruments. On the funding side, total borrowings declined significantly to PKR 1.1trn in 9MCY25 from PKR 21.trn in 9MCY24, reflecting reduced reliance on short-term market borrowings and improved liquidity management. Despite lower investment volumes, profitability improved substantially, with net mark-up/interest income increasing to PKR 32.8bln from PKR 24.9bln, while total income rose to PKR 48.3bln from PKR 46.7bln. Consequently, profit before tax and profit after tax increased to PKR 39.8bln and PKR 27.7bln, respectively, compared to PKR 17.4bln and PKR 13.4bln in 9MCY24. Asset quality indicators improved, with the infection ratio declining to 6.9% from 8.7%, supported by cautious lending strategies and recoveries. Meanwhile, capitalization remained strong, with CAR improving to 59.5% in 9MCY25 from 50.8% in 9MCY24, remaining comfortably above regulatory requirements. Going forward, the industry’s outlook remains stable; however, margin normalization may gradually emerge as high-yield assets mature in a relatively lower interest rate environment.

The Company’s market share in terms of advances marginally inclined to 6.5% reflecting their cautious approach amidst a stressed macroeconomic environment, in line with industry norms

During CY25, markup earned witnessed a decline and stood at PKR 4,966mln (CY24: PKR 6,169mln), primarily driven by lower returns from investment portfolio and normalization in market yields. Markup expensed also witnessed a decline and stood at PKR 3,464mln (CY24: PKR 4,762mln) attributable to reduced borrowing costs and repricing of liabilities in the lower interest rate environment. Hence, the net markup income improved and stood at PKR 1,502mln (CY24: PKR 1,407mln). The Company’s total income improved and stood at PKR 1,627mln (CY24: PKR 1,521mln) supported by overall income diversification and non-markup income streams. During 1QCY26, markup earned remained stable at PKR 1,313mln, in line with the corresponding period, reflecting stable earning asset yields at the start of CY26 cycle.

During CY25, non-markup income of PAIR Investment Company Limited stood at PKR 125mln (CY24: PKR 114mln), reflecting a marginal increase driven by higher other income despite a sharp decline in dividend income, which stood at PKR 12mln (CY24: PKR 58mln). Net markup income to total income increased slightly, supported by the overall income structure stability during the period. During CY25, the Company recorded a significantly lower credit loss allowance of PKR 98mln (CY24: PKR 574mln), indicating a sharp reduction in provisioning requirements compared to the previous year. Hence, the net profit of the Company stood at PKR 396mln (CY25: PKR 400mln), largely stable on a YoY basis despite changes in income composition and provisioning charges.

The management of the Company is committed to generating a green bottom line while adopting a cautious approach. By adhering to disciplined financial management policies, they anticipate maintaining minimal nonperforming loans in the years ahead.

The Company has designed Internal Rating Model and methodology to gauge credit risk elements in the banking book of PAIR Investment Company Limited. The credit products mainly comprise of fund based and non-fund based exposures, including short term finance, long-term financing, project finance, term lending, reverse repurchase, bridge finance, investment in TFCs, sukuk bonds and placement with financial institutions. During CY25 and CY24, the Company’s corporate book portfolio stood at PKR 12,701mln and PKR 10,700mln, respectively, reflecting portfolio expansion during the period. Asset quality improved, with the gross infection ratio declining to 14.1% in CY25 (CY24: 15.5%), indicating better portfolio performance and improved risk management outcomes.

The Company’s asset base witnessed YoY growth of ~13% to PKR 45,591mln (CY24: PKR 40,437mln) mainly driven by expansion in the investment portfolio. Analysis of the investment book reveals that the investment book stood at PKR 28,427mln in CY25 (CY24: PKR 25,923mln), reflecting steady portfolio growth during the period. Within the investment portfolio, exposure to government securities remained dominant and increased to PKR 23,083mln (CY24: PKR 20,263mln), maintaining a significant share of the total investment book and indicating continued preference for sovereign instruments.

Liquidity and Funding During CY25, PAIR Investment Company Limited reported a sizable increase in its borrowing book to PKR 26,746mln (CY24: PKR 23,799mln), primarily driven by higher reliance on funding from banks and financial institutions along with continued use of short-term liquidity instruments. However, the share of banks and FI borrowings declined significantly to 72.3% in CY25 (CY24: 81.6%), indicating a gradual diversification in the funding mix. The Company’s deposit base also witnessed a strong increase to PKR 6,074mln (CY24: PKR 4,501mln), reflecting improved deposit mobilization and a strengthening of the core funding base. Overall, the increase in deposits is expected to support funding stability and contribute towards a more balanced and cost-efficient liability structure going forward.

The equity base of Company stood at PKR 11,304mln in CY25 (CY24: PKR 10,883mln), comprising Tier-I capital and providing adequate buffer to absorb potential macroeconomic and market-related shocks. The Company’s capital adequacy ratio (CAR) moderated to 38.5% in CY25 (CY24: 45.3%), however remained significantly above regulatory requirements, reflecting continued strong capitalization despite asset base expansion. The equity to total asset ratio also declined slightly to 24.8% in CY25 (CY24: 26.9%), primarily driven by balance sheet growth outpacing equity accretion. Overall, the Company continues to maintain a comfortable capital position with sufficient headroom over minimum capital requirements, though utilization of capital has increased in line with business expansion.